Magnolia Bostad (MAG) Q4 2020 earnings summary

Executive summary

• Record full-year profit amid high project activity: 3,904 residential units sold, 3,599 production starts and a growing focus on long-term self-management.

• The portfolio expanded to 22,731 estimated building rights; net debt declined as operating cash flow improved.

Financial highlights

• Net sales SEK 2,358m (2019: SEK 896m); gross profit SEK 594m (SEK 30m); operating profit SEK 906m (SEK 366m).

• Profit before tax SEK 725m (SEK 194m); net income SEK 688m (SEK 157m); EPS SEK 17.40 (SEK 3.41).

• Operating profit included SEK 336m from changes in investment-property values (2019: SEK 348m); net financial items were SEK -181m (SEK -172m).

• Operating cash flow was SEK 405m (2019: SEK -18m); cash and cash equivalents ended at SEK 277m (SEK 441m).

Outlook and guidance

• Board-approved 2025 target: at least 4,000 completed self-managed units or investment properties worth at least SEK 8bn.

• Target production starts of at least 3,000 units annually on average over a business cycle; equity/assets target remains at least 30%.

• Management expected strong development in 2021 across projects for sale and self-management; the board proposed no dividend for FY2020.